“Kampala Property Market 2025: Rising Demand Meets Softening Prime Segments”
Kampala,Uganda
According to recent reports: Apartment prices in Kampala rose an estimated 8 – 12% this year, with hotspots such as Kololo, Bugolobi and Muyenga seeing even higher appreciation.
At the same time, occupancy rates in prime office and residential segments are softening: for example, Grade A office occupancy dropped to 85% from 89.8% a year earlier.
Residential rental yields vary: mainstream apartments average 3.7 – 6.4 %, while prime units in areas like Kololo and Ntinda achieve 8 – 10 %.
Underlying drivers remain strong: rapid urbanisation (growth >5% annually for Kampala), rural‑to‑urban migration, and housing shortages (Uganda has a housing deficit while annual new supply is low). The result: suburbs such as Kira, Lubowa, Naalya and Mpigi are gaining attention as commuters seek value and connectivity to Kampala.
For investors and prospective homeowners, the message is nuanced: prime luxury districts remain expensive and face some softness, while mid‑income/suburban segments present growth and yield opportunities. For city dwellers, housing affordability and rental supply remain key issues — notably the mismatch between supply and what many can afford.
